Creating peace of mind through honest and committed management[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

November 1, 2011
For Immediate Release
REIT Issuer
Ichigo Real Estate Investment Corporation (8975)
1-1-1, Uchisaiwai-cho, Chiyoda-ku, Tokyo
Representative: Yoshihiko Takatsuka, Executive Director
Asset Management Company
Ichigo REIT Management Co., Ltd.
Representative: Wataru Orii, President & Representative Director
Contact: Masaya Hiruta, Senior Executive Managing Director
Tel: 03-3502-4891

Merger of FC Residential Investment Corporation andIchigo Real Estate Investment CorporationIchigo Real Estate Investment Corporation and FC Residential Investment Corporation (“FCResidential”) have met all of the requirements specified in their merger agreement, as disclosed in“Notice Regarding Execution of Merger Agreement between FC Residential Investment Corporationand Ichigo Real Estate Investment Corporation” dated August 8, 2011, and their merger thus
finalized today. The name of the new REIT is Ichigo Real Estate Investment Corporation (“IchigoREIT”).
1. Merger Effects
1) Portfolio Diversification
The assets under management of the new Ichigo REIT have expanded to 71 properties and 110 billion
yen assets on an acquisition-price basis (based upon the appraisal value of old Ichigo REIT’s assets as of
the fiscal period ending April 2011). The merger combines the residential properties of the old FC
Residential and the office properties of the old Ichigo REIT, which enables the new Ichigo REIT toconstruct a portfolio with risks diversified among asset types and regions.
2) Growth in Market Capitalization and Enhancement of Unit Liquidity
In addition to an expansion of Ichigo REIT’s assets under management and market capitalization, asdisclosed in “Notice of Unit Split” dated August 8, 2011, Ichigo REIT has implemented a one to sevenunit split . The smaller unit price is expected to expand the investor base and improve liquidity. (Pleasenote that per the rules of the Tokyo Stock Exchange, in order to have been registered as an Ichigo REIT
unitholder on October 31, 2011, unitholders needed to have acquired their units by October, 26, 2011.
October 27 was thus the “ex-dividend date” for Ichigo REIT unitholders.)3) Strategic Use of Negative Goodwill
The merger is expected to generate gains from negative goodwill. In rebalancing the portfolio as part ofIchigo REIT’s growth strategy, this negative goodwill can be used to stabilize the dividend.

2. Post-Merger Asset Management Policy
1) External Growth Strategy
Ichigo REIT will seek to improve portfolio quality via rebalancing the portfolio and the strategic use of
the merger-generated negative goodwill. Ichigo REIT will seek to construct the portfolio to secure stablesources of dividends by investing in a wider range of asset types beyond offices and residences. Over thelonger term and at the appropriate time, it will also consider more dramatic external growth opportunities
that take advantage of new financing options.
2) Internal Growth Strategy
Ichigo REIT is reducing the number of custodians and administrative service providers, which isexpected to decrease administrative costs. Going forward, it will further proceed with the concentrationof service providers, cost reductions, and more efficient management. In asset management, it will
actively pursue measures to enhance the profitability of its properties by deploying the know-how andnetworks developed by the asset management companies of the two merged investment corporations.
3) Financing Strategy
Ichigo REIT expects to continue to diversify its lenders to further stabilize its financial base and reducerefinancing risk, maintain an appropriate LTV, and reduce financing costs. It will also strengthen
relationships with regional banks, taking advantage of its regionally-diversified portfolio.

This document is being distributed today to the Kabuto Club (the press club of the TSE) as well as to thepress club for the Ministry of Land, Infrastructure, Transport, and Tourism and the press club for
specialty construction newspapers at the Ministry of Land, Infrastructure, Transport, and Tourism.
Website of Ichigo REIT: www.ichigo-reit.co.jp/eng